Periodic invoicing is used for trade with products and/or services which are based on measured usage and invoiced periodically. Some examples are consumption of electricity, water or telephony services. The business process is advantageous to both buyers and suppliers.
Standardised business process gives an efficient flow for periodic invoicing
GS1:s business process gives, amongst other things, the possibility of:
- a faster and more efficient process
- improved internal control
- automatic accounting at the buyer
- more reliable invoice processing
- automatic bookkeeping
- more efficient follow-up on aggreements
When using periodic invoicing, no order is placed but the product and/or service is invoiced periodically according to contract and price list. The invoice is based on the buyer's use of the product during a given time period which the parties have agreed in the contract.
Periodic invoicing of telephony services
The supplier can send the buyer a telephony specification if this has been agreed in the contract. The specification complements the invoice and details how the service has been used during the invoicing period.
Periodic invoicing of electricity consumption
The invoice is normally based on the buyer's actual consumption during the invoicing period. In certain cases the basis can be an estimate of the buyer's consumption. This is common with electricity supply where the supplier invoices an estimated consumption based on some form of prognosis or historical data before the electricity meter is read. Once the electricity meter has been read, the final consumption is invoiced.
Guidelines and specifications for ESAP 9.1
GS1 Sweden has developed together with users a standardised business process for periodic invoicing. The guidelines and specifications for ESAP 9.1 describe this process in a way that allows users and IT professionals to use the content to develop applications.